DA cries foul, says City of Johannesburg ‘can’t pay’ debt collection firms

18th October 2023 By: News24Wire

 DA cries foul, says City of Johannesburg ‘can’t pay’ debt collection firms

The Democratic Alliance (DA) in Johannesburg alleges that debt collection companies the City hired have not been paid in six months.

In a statement on Wednesday, DA Johannesburg caucus leader Belinda Kayser-Echeozonjoku claimed that the 93 companies appointed to collect debt to bolster the R80.9-billion City budget have not been paid for six months.

Although she did not provide evidence of non-payment, she said party officials had been "reliably informed".

She said the companies had collected R500-million in the first two months of the year.

"The DA has been warning that Johannesburg is on the brink of collapse. A clear indication of this is an ever-growing list of unpaid suppliers," she said.

Kayser-Echeozonjoku claimed that a meeting was held last week between the group finance department and the panel of debt collectors where "the City informed them that despite the R500 million they had collected in January and February 2023, they would not be compensated for services rendered".

She claims Johannesburg Metro Police Department (JMPD) roadblocks, in which drivers are screened for outstanding municipal debt and which the DA believes are illegal, are a means of rates collection.